What is VAIDS?VAIDS is an
acronym for Voluntary Assets and Income Declaration Scheme. It is a project
initiated by the Federal Government of Nigeria which is aimed at providing an
opportunity for corporate and individuals to regularize their tax status
relating to previous tax periods.Under the
scheme, taxpayers were given the opportunity to benefit from total waiver of
outstanding and overdue interests and penalties. They also stand be the
beneficiaries of the assurance that they will not face criminal prosecution for
tax offences or be subjected to further tax investigations.To profit
from the scheme, taxpayers will be required to fully and honestly declare
previously undisclosed assets and income.In addition
to raising tax revenue for the period of its operation, VAIDS will
provide an opportunity to increase general tax awareness and compliance among
the general public.

Important things to know about VAIDS1.It
is a time limited opportunity.

2. ALL
taxes (Federal and State) are Covered

3. Up
to three (3) Years Instalment Plan subject to agreement with Revenue
AuthorityWhy VAIDS?The key
motivation for introducing the scheme is that in spite of the fact that Nigeria
has some of the most profitable and well capitalized companies in Africa, the
tax remittance rate is still low.Nigeria’s
low tax revenues are inconsistent with the lifestyles and spending habits of a
large number of citizens. Many are engaged in transfer of assets overseas, use
of offshore companies in tax havens and registration of assets in nominee
names.Tax evasion
is a significant challenge. Some of the ways in which it is perpetrated are:

Manipulation
of accounting records

Use of complex structures for transactions

Non registration for VAT and non remittance after charging

Non payment of CGT on assets disposal

Escaping
detection of income due to lack of machinery for tracing such

According
to the Joint Tax Board, there were only 14 million taxpayers in Nigeria as at
May 2017, compared to an estimated 69.9 million economically active people
while our tax to GDP ratio is rather poor at 6%.

Project Lighthouse – The Ministry of Finance in collaboration with
Relevant Tax Authorities is building a revenue assurance platform through the
rigorous gathering of data from a wide range of sources including:

Automatic Exchange of Information for Tax Purposes – Nigeria being a
signatory to the Multilateral Competent Authority Agreement of the OECD, will
start exchange of financial information with over 100 jurisdictions under the
Common Reporting Standards by the end of 2018.Your Obligations as Members of IODs

”Every
Generation Of People Owe The Next Generation A Debt. This is Paid By Ensuring
That We Provide Means For The Next Generation To Survive.” - Vice
President, Federal Republic of Nigeria Prof. Yemi Osinbajo SAN GCON

It is a
known fact that the decline in oil revenue contribution since 2014 to date has
had an adverse effect on the ability of the country to meet her development
objectives.

We must
therefore act fast now. As Chairmen, Directors and CEOs, we owe the next
generation a debt. We must contribute to the survival of the next generation by
performing our civic duty of simply paying our taxes. We believe that if
everyone of you comply along with your companies, we will indeed take care of
our generation and the generations to come.

This is a
call for everyone to take advantage of VAIDS. We all should make sure that this
opportunity does not pass us by, as truthful voluntary tax compliance is our
own contribution towards the development of Nigeria.